TA 2022-09-12: BTC/USDTPosition: Long
Crypto: BTC/USDT
Entry Point: 21874
Stop Loss: 21089
Take Profit: 23695
Financial_advisor
Unknown Wallet Deposits 260000 ETH Worth $434 Million on Binance
An unknown investor has made a huge transfer of ETH to Binance.
Cryptocurrency whale tracking platform, Whale Alert, has observed the movement of a massive amount of Ethereum (ETH) to Binance, the world’s largest crypto exchange.
According to blockchain data shared by Whale Alert, a total of 260,000 Ethereum were deposited on Binance in the hours leading up to press time.
When the transaction was made, the 260,000 ETH were worth approximately $434.18 million.
Not Surprising
It is not surprising to see a whopping amount of ETH deposited to Binance. Ethereum is expected to undergo a significant upgrade, ultimately leading to the network’s transition from a Proof-of-Work algorithm to a Proof-of-Stake.
The Ethereum team has speculated that the Merge will occur around September 13 – 15, 2022. With the upgrade happening soon, the price of Ethereum is expected to fluctuate heavily in the hours leading up to the upgrade as investors may favor the “sell the news” phenomenon.
TA 2022-09-06: BTC/USDTBitcoin has been trading near $20K for the past 12 days. More likely $20k will prove to be a false bottom.
TA 2022-08-29: DXYThere is a chance of correction in the DXY index. I will set up my trading basis this week, according to this analysis.
TA 2022-08-27: Dominance of Tether (USDT)The dominance of Tether reacted to the accumulation zone and became bullish, and crypto went for the next impulse.
Rising/Falling Wedge
Ascending Wedge in an uptrend-bearish
1. This pattern occurs when the slope of price candles’ highs and lows join at a point forming an inclinin wedge.
2. The slope of both lines is up with the lower line being steeper than the higher one.
3. Place an order to breakdown and out of the wedge. The drop out of the wedge can be very dramatic.
Descending Wedge in a downtrend -bullish
1. This formation occurs when the slope of the price candle high and lows join at a point forming a declining wedge.
2. The slope of both lines is down with the upper line being steeper than the lower one.
3. To trade this pattem, place an order on a break up and out of the wedge.
TA 2022-08-15: ADA/USDT1. Symbol: ADA/USDT
2. Market: Crypto Futures Trading
3. Position: Sell
4. Advise: High Risk
5. Entry: Wait for confirmation in the white circle zone
6. Take Profit: As shown in the chart
Is 26 Sep 2022 The Return Date of Bitcoin?
1. 1st (inverted V) Cycle = 27 weeks = 11 Jan 2021 to 12 Jul 2021
2. 2D (inverted V) Cycle = 27 Weeks = 12 Jul 2021 to 17 Jan 2022
3. Uncertainty Region = 9 weeks = 17 Jan 2022 to 21 Mar 2022
4. We are expecting the third (inverted V) cycle !!!
RSI Trend Strategy GuidelinesThe RSI is a versatile indicator, and can be used to provide entry signals during a trend. To get the signals a moving average is applied to the RSI.
1. Trades are only taken in the direction of the trend. For an uptrend only take longs. For a downtrend only take shorts (puts).
2. During a downtrend the RSI must move above 60 to indicate a pullback. When the RSI crosses back below its moving average (can be at any number, just as long as the RSI is or was above 60 recently) go short.
3. During an uptrend the RSI must move below 40 to indicate a pullback. When the RSI crosses back above its moving average (can be at any number, just as long as the RSI is or was below 40 recently) go long.
4. Give the price at least two or three bars (whatever time frame you are trading on) or more before considering an exit. This gives the price some time to move in your favor.
Using BTC Dominance With Current Bitcoin PriceSome people monitor bitcoin price along with bitcoin dominance to help them make trading decisions. Although they are not iron laws, here are some potential outcomes that various combinations of BTC price and dominance may be indicative of.
1. When the price and dominance of BTC are rising, it could signal a potential bitcoin bull market.
2. When the price of BTC is rising but BTC dominance is falling, it could signal a potential altcoin bull market.
3. When the price of BTC is falling but BTC dominance is rising, it could signal a potential altcoin bear market.
4. When the price and dominance of BTC are falling, it could signal a potential bear trend for the entire crypto market.
5. While these two factors do not imply a definite bull or bear market, historical observations suggest a correlation.
Shooting Star Candlestick
What is the Shooting Star Pattern?
1. A shooting star is a type of candlestick pattern which forms when the price of the security opens, rises significantly, but then closes near the open price.
2. The distance between the highest price of the day and the opening price should be more than twice as large as the shooting star’s body.
What does Shooting Star tells you?
1. Shooting stars signals a potential downside reversal and is most effective when it forms after 2-3 consecutive rising candles having higher highs.
2. A shooting star opens and rises strongly during the trading session, showing the same buying pressure that is seen over the last trading sessions.
3. At the end of the trading session, the sellers push the price down near the open.
4. This shows that the buyers have lost control by the end of the day, and the sellers have taken over.
5. The long upper shadow indicates that the buyers are losing position as the price drops back to the open.
6. The candle after the shooting star gaps down and then moves lower on heavy volume.
7. This candle helps in confirming the price reversal and indicates that the price will continue to fall.
Trading Scenario
1. Trade Entry: Before you enter a shooting star trade, you should confirm that the prior trend is an active bullish trend.
2. Stop Loss: You should always try to use a stop-loss order when trading the shooting star candle pattern.
3. Taking Profits: The price target for this trade should be equal to the size of the shooting star pattern.
Limitations of Shooting Star
1. One should not only rely on a candle pattern like in a shooting star for making trading decisions.
2. This is why confirmation is required, one can confirm by the next candle or other technical analysis indicators.
3. One should also use stop losses when using candlesticks to control the losses.
4. A candlestick pattern is more significant when it occurs near an important level signaled by other forms of technical analysis.
Measure Reward-to-Risk Ratio (RRR)
key Takeaways
1. The risk/reward ratio is used by traders and investors to manage their capital and risk of loss.
2. The ratio helps assess the expected return and risk of a given trade.
3. An appropriate risk reward ratio tends to be anything greater than 1:3.
How to Measure Reward-to-Risk (RRR) ?
1. Evaluate the potential price levels for your stop loss (SL) and profit target (PT)
2. Measure the distance between your entry and your stop loss (SL). This is your “Potential Risk“.
3. Measure the distance between your entry and your profit target (PT). This is your “Potential Reward“.
4. Divide the two: Potential Reward / Potential Risk.
RRR Calculation
1. Potential Risk = 66.24 - 63.73 = 2.51
2. Potential Reward = 63.73 - 54.97 = 8.76
3. RRR = Potential Reward / Potential Risk = 8.76/2.51 = 3.49
